Best high-yield savings interest rates today, December 24, 2025 (Earn up to 4% APY)

Core Insights - The Federal Reserve has cut the federal funds rate three times in late 2024 and announced a third rate cut for 2025, leading to a decline in deposit rates, making high-yield savings accounts increasingly important for earning higher interest on savings [1][5]. Group 1: High-Yield Savings Accounts - High-yield savings accounts offer significantly higher interest rates compared to traditional savings accounts, with rates reaching as high as 4% APY [2][3]. - The average savings account rate is currently at 0.39%, while the best rates for high-yield accounts are around 4% to 4.5% APY [3]. - As of December 24, 2025, the highest savings account rate available is 4% APY, offered by SoFi [3]. Group 2: Interest Rate Trends - Deposit account rates, including savings rates, are directly tied to the federal funds rate set by the Federal Reserve; when the Fed lowers its rate, deposit rates typically decrease [4]. - Following multiple interest rate hikes due to inflation, the Fed's recent cuts indicate that savings account rates are expected to continue falling [5]. Group 3: Considerations for Savings Accounts - High-yield savings accounts are suitable for short-term savings goals, providing a secure place to hold funds while earning a solid return [6]. - Factors to consider when choosing a savings account include interest rates, financial goals, accessibility of funds, and security [6][7]. - Savings accounts are generally insured by the FDIC, making them a low-risk option compared to other investment types [7].